Interest Rates on Bank Deposits and Loans: September 2020

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Interest Rates on Bank Deposits and Loans: September 2020 02/11/2020 - Press Releases

1.INTEREST RATES ON EURO-DENOMINATED NEW DEPOSITS AND LOANS

In September 2020, the overall weighted averageinterestrate onnewdeposits remained unchanged, while the corresponding rate onnewloans decreased.The spread between loan and deposit rates also decreased to 3.82 percentage points (seeTable1).

New Deposits

The overall weighted average interest rate on all new deposits remained unchanged at 0.11%.

In particular, the average interest rates on overnight deposits placed by households and on deposits placed by non-financial corporations remained unchanged at 0.05% and 0.07%, respectively. The average interest rate on deposits from households with an agreed maturity of up to 1 year remained almost unchanged at 0.24%.

New Loans

The overall weighted average interest rate on all new loans to households and non-financial corporations decreased by 18 basis points to 3.93%.

More specifically, the average interest rate on consumer loans without a defined maturity (a category which comprises credit cards, open account loans and overdrafts) remained almost unchanged at 14.32%.

The average interest rate on consumer loans with a defined maturity at a floating ratedecreased by 21 basis points to 11.05%. The average interest rate on housing loans at a floating rate decreased by 4 basis points to 2.43%.

The average interest rates on corporate loans and on loans to sole proprietors without a defined maturity remained almost unchanged at 4.50% and 6.73% respectively.

The average interest rate on corporate loans with a defined maturity at a floating ratedecreased by 45 basis points to 2.59%, in September 2020, whereas the volume of new business increased to €1,580 million from €1,212 million in the previous month. More specifically, the interest rate on loans with a defined maturity at a floating rate to small and medium-sized enterprises (SMEs) decreased to 3.11% from 3.31% in the previous month, whereas the corresponding volume of new business decreased to €583 million from €693 million in the previous month (see Chart and Table 1).

As regards to the structure of interest rates according to the size of the loans granted, the rate on loans of up to €250,000 stood at 4.55% from 4.57% in the previous month, on loans of over €250,000 and up to €1 million decreased by 11 basis points to 3.11%, and the rate on loans of over €1 million decreased by 30 basis points to 2.42%.

2. INTEREST RATES ON OUTSTANDING AMOUNTS OF EURO-DENOMINATED DEPOSITS AND LOANS

In September 2020, the overall weighted averageinterestrate onoutstandingamounts of all deposits remained unchanged, while the corresponding rate on the outstanding amounts of loansremained almost unchanged.The spread between loan and deposit rates remained also almost unchanged at 3.67 percentage points (see Table 2).

Outstanding Deposits

The overall weighted average interest rate on outstanding amounts of all deposits (including overnight deposits) remained unchanged at 0.11%.

The average interest rate on outstanding amounts of deposits with an agreed maturity of up to 2 years placed by households remained almost unchanged at 0.25%; the corresponding rate on deposits placed by non-financial corporations decreased to 0.19% from 0.22% in the previous month.

Outstanding Loans

The overall weighted average interest rate on outstanding amounts of all loans remained almost unchanged at 3.78%.

In particular, the average interest rate on outstanding amounts of housing loans with over 5 years' maturity remained almost unchanged at 2.01%. The average interest rate on outstanding amounts of consumer and other loans to individuals and private non-profit institutions with a maturity over 5 years remained unchanged at 6.39%; the corresponding rate on corporate loans decreased to 3.27% from 3.30% in the previous month. The average interest rate on outstanding amounts of loans to sole proprietors with over 5 years' maturity remained unchanged at 4.25%.

Table 1: Average interest rates on new euro-denominated deposits and loans (percentages per annum)

		July 2020	August 2020	September 2020
DEPOSITS	Overnight from households	0.05	0.05	0.05
Overnight from non-financial corporations	0.08	0.07	0.07
From households with an agreed maturity of up to 1 year	0.25	0.26	0.24
Overall weighted average rate on all deposits	0.11	0.11	0.11
LOANS	Consumer without a defined maturity	14.36	14.35	14.32
Corporate without a defined maturity	4.53	4.52	4.50
To sole proprietors without a defined maturity	6.74	6.71	6.73
Housing at a floating rate	2.53	2.47	2.43
Consumer with a defined maturity at a floating rate	10.75	11.26	11.05
Corporate with a defined maturity at a floating rate:	2.95	3.04	2.59
-amounts of up to €250,000	4.31	4.57	4.55
-amounts of over €250,000 and up to €1 million	3.22	3.22	3.11
-amounts of over €1 million	2.65	2.72	2.42
Loans with a defined maturity to small and medium-sized enterprises at a floating rate	3.59	3.31	3.11
Overall weighted average rate on all loans	4.07	4.11	3.93
Interest rate spread	3.96	4.00	3.82

Table2:Averageinterestratesonoutstandingamountsofeuro-denominateddepositsandloans (percentages per annum)

		July 2020	August 2020	September 2020
DEPOSITS	From households with an agreed maturity of up to 2 years	0.28	0.26	0.25
From non-financial corporations with an agreed maturity of up to 2 years	0.24	0.22	0.19
Overall weighted average rate on all deposits	0.12	0.11	0.11
LOANS	Housing with over 5 years' maturity	2.01	2.02	2.01
Consumer and other loans to individuals and private non-profit institutions with over 5 years' maturity	6.43	6.39	6.39
Corporate with over 5 years' maturity	3.31	3.30	3.27
To sole proprietors with over 5 years' maturity	4.27	4.25	4.25
Overall weighted average rate on all loans	3.81	3.80	3.78
Interest rate spread	3.69	3.69	3.67

The complete data set of bank deposit and loan interest rates is published in the sub-section Bank deposit and loan interest rates on the Bank of Greece website.

Notes:

- The interest rate spread is the difference between the overall weighted average rate on all loans and the overall weighted average rate on all deposits.

- For the calculation of the overall weighted average interest rate on all outstanding deposits, the overnight deposits are also taken into account.

- Loans at a floating rate comprise also loans with an initial rate fixation period of up to one year.

- New business refers to new contracts that were agreed during the reference month and not actual loan disbursements.

The next Press Release on 'Interest Rates on Bank Deposits and Loans' for October 2020 will be published on 2 December 2020, according to the Release calendar, as published on the Bank of Greece website.